Canaan Inc. (NASDAQ: CAN), a leading provider of supercomputing solutions for digital currency mining, experienced a significant pre-market plunge of 6.58% on Tuesday. This sharp decline comes amidst a broader selloff in cryptocurrency-related stocks, triggered by a substantial drop in Bitcoin and Ethereum prices.

According to market data, Bitcoin fell to $113,000, while Ethereum dropped to $4,100 during overnight trading. This downturn in major cryptocurrencies has had a ripple effect across the crypto mining and blockchain technology sector. Canaan, which manufactures Bitcoin mining machines, was particularly hard hit by this market sentiment.

The crypto market's volatility has impacted other industry players as well. Companies such as BMNR and BTCS experienced a 5% decline, while SBET fell by 4%. Other notable companies in the sector, including MARA and BTBT, also saw their stocks drop by 3%. This widespread decline underscores the close correlation between cryptocurrency prices and the performance of related stocks, highlighting the risks associated with investments in this volatile market.

Investors are closely watching the cryptocurrency market and its impact on companies like Canaan. As Bitcoin and Ethereum prices continue to fluctuate, it's likely that we'll see further volatility in the stock prices of crypto-related firms. Market participants are advised to monitor these trends closely and consider the potential risks in their investment strategies.